Mon-Fri 8am-6pm EST -  Support: 212-391-2211

  • My account
Wallace Precious MetalsWallace Precious Metals
0
  • Home
  • Gold
    • Gold Coins
      • American Gold Coins
      • Canadian Gold Coins
      • British Gold Coins
      • Chinese Gold Pandas
      • Austrian Gold Philharmonics
      • European Gold Sovereigns
      • Gold Bars
    • Other Gold Coins
      • Somalian Gold Elephants
      • Ukrainian Gold Coins
      • Disney Gold Coins
      • South Korean Gold Coins
      • World Gold Coins
  • Silver
    • Silver Coins 1
      • Silver Bars
      • Silver Coins
      • Silver Bars
      • Silver Rounds
      • Silver Statues
      • Silver Bullets
      • Silver Eagles
      • Silver Dollars
      • 90% & 40% Silver Coins
      • Ukrainian Silver Coins
    • Silver Coins 2
      • America The Beautiful Series
      • Canadian Silver Coins
      • Canadian Silver Coins
      • Chinese Silver Pandas
      • Austrian Silver
      • South Korean Silver Coins
      • British Silver Coins
      • Australian Silver Coins
      • New Zealand
      • Gilded Silver Coins
    • Other Silver Coins
      • Solomon Islands Silver Coins
      • Armenian Silver Coins
      • Biblical Silver Coins
      • Cook Islands Silver Coins
      • Rwanda Silver Coins
      • Congo Silver Coins
      • Fiji Silver Coins
      • Native American Coins
      • Disney Silver Coins
      • World Silver Coins
  • Platinum
    • IRA Eligible Platinum
    • Platinum Bars
  • Palladium
  • On Sale
    • New Arrivals
  • Sell To Us
  • Charts
    • Gold Price Charts
    • Silver Price Charts
    • Platinum Price Charts
    • Palladium Price Charts
    • Stock Market Analysis
      • Technical Analysis Charts
    • Commodities Chart Box
  • IRA
  • Other
    • Copper
      • Copper Bars
      • Copper Rounds
      • Wheat Pennies
    • Accessories
      • Bar Accessories
      • Coin Accessories
  • Contact

Gold price trading in neutral territory following rising inflation, U.S. personal income grows 21.1% in March

Admin
Apr 30, 2021 Precious Metals News Comments Off on Gold price trading in neutral territory following rising inflation, U.S. personal income grows 21.1% in March



Editor’s Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today’s must-read news and expert opinions. Sign up here!

(Wallace Refiners) -The gold market is seeing some modest bullish momentum as inflation pressures continue to rise due to the U.S. governments stimulus spending.

Friday, the Department of Commerce said that personal income in March expanded 21.1%, following February’s 7.1 drop. The data beat expectations as economists were expecting to see a 20.2% increase.

Although the personal income data was better than expected, economists note that its not a major shock to markets as the government started sending out $1,400 checks to adults as part of a $1.9 trillion stimulus package.

“The estimate for March personal income and outlays was impacted by the continued government response to COVID-19. Economic impact payments associated with the American Rescue Plan Act of 2021 (which was enacted on March 11, 2021) were distributed in March,” the report said.

 Although consumers saw their income grow last month, they aren’t in a major hurry to spend it. The report said that personal consumption increased 4.2% last month, up from February’s 1% decline. Economists were expecting to see consumption grow 4.3%.

Some economist think that it’s only a matter of time that its only a matter of time before pent-up demand is unleased in the U.S., fueled by the high savings rate.

“Fiscal stimulus payments drove a one-time spike in income growth to 21.1%, leaving the savings rate at 27.6%, which will provide a catalyst for a further pickup in spending ahead as services continue to reopen,” Katherine Judge, senior economist at CIBC.

The gold prices are attracting some buying attention in initial reaction to the latest consumption data. June gold futures last traded at $1,769 an ounce, relatively unchanged on the day.

According to some analysts, the precious metal appears to reacting to rising inflation. The report said that the core Personal Consumption Expenditures (PCE) Index, which strips out volatile food and energy prices, rose 0.4% last month, up from the previous increase of 0.1%. Economists expecting to see an increase of 0.3%.

For the year core inflation is up 1.8%, up significantly from February’s reading of 1.4%. Headline inflation for the year increased 2.3%, up from the previous increase of 1.5%.

Market analysts have noted that gold remains an attractive inflation hedge. They have also said that rising inflation will keep real interest rates at historic levels for the foreseeable future, even if nominal bond yields rise due to improving economic conditions.



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Wallace Precious Metals The author has made every effort to ensure accuracy of information provided; however, neither Wallace Precious Metals nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Wallace Precious Metals and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.



Source link

GoldgrowsincomeinflationMarchneutralpersonalpricerisingterritoryTrading
admin

Agnico Eagle maintains outlook | Wallace RefinersPrevious post
OceanaGold delivers strong operational and financial results in March quarterNext post

NEWSLETTER

Subscribe to our newsletter to get updates regarding our business and precious metal refining.

MY ACCOUNT

  • Cart
  • Checkout
  • On Sale
  • My account
  • Shop

ABOUT US

  • Sell To Us
  • Careers
  • About
  • Payments
  • Refine Jewelry

Address

Wallace Refiner’s Inc

+1 212-391-2211

15 W 47th St # 101, New York, NY 10036, United States

contact@wallacerefiners.com

©2020 Wallace Refiners - Wallace Precious Metals | All Rights Reserved.

Send Enquiry